Obama has Failed American Homeowners

NACA Sues HUD for Political Retaliation

(Boston, MA) –On Wednesday July 20, 2011 at 10:00 am in the Murrow Room of the National Press Club, the nation’s largest homeownership organization, criticizes the Obama administration and HUD for its ineffectiveness in helping the American homeowner.  Homeowners with government backed loans will join NACA CEO Bruce Marks to announce a lawsuit against HUD for trying to silence and undermine NACA. 

NACA has been outspoken in its criticism of President Obama’s foreclosure prevention programs.  The government mortgage programs which constitute 80% of the total mortgages (i.e. FHA, VA, Fannie Mae and Freddie Mac) are the least effective in preventing foreclosures and in restructuring/modifying mortgages to make them affordable.  In essence we taxpayers are foreclosing on ourselves.  “It’s the height of hypocrisy for our President and HUD Secretary Shaun Donovan to pretend they are working to keep people in their homes when they control the most problematic loans,” said NACA CEO Bruce Marks.  This contrast is most appalling when veterans, those willing to pay the ultimate sacrifice, are often able to modify a non-government mortgage, as low as 2% permanently and/or a principal reduction, while veterans with a VA mortgage cannot achieve this and must meet nearly impossible conditions to qualify for a loan modification.  One of the VA conditions requires the military member to be significantly delinquent which could jeopardize their clearance and job in the armed services.

NACA has sued HUD for what amounts to political retaliation and government interference putting families facing foreclosure at risk.  NACA provides about 30% of all the counseling services in the country and has more than withstood the politically initiated HUD Inspector General report.  After a six month review by full time auditors, NACA become one of the very organizations to receive a glowing report with no findings and no recommendations.  NACA’s HUD – IG report is at: http://www.hud.gov/offices/oig/reports/files/ig1111004.pdf

Despite this, HUD has withheld NACA’s grant and has further tried to undermine its programs.  NACA won’t be blackmailed, states Bruce Marks, “We will continue to speak out and get our day in court so the American people can see and hear from HUD Secretary Shaun Donovan, and other current and past administration executives on why this administration has overreached in its use of grants and regulations in requiring obedience to its policies and positions.  

The mismanagement and political retaliation is apparent with HUD’s and NeighborWorks’ administration of the Emergency Homeowner Loan Program (“EHLP”).  The billion dollars will not be fully allocated since the application was delayed for over six months, providing less than a month to apply, the selected organizations are unable to meet their commitments and the operations have not even been completed.  In fact, NACA requested an allocation of 70% of the total demand was eliminated from the program.  However, we have many completed applications that NeighborWorks and HUD refuse to accept.  The impact is that the unused funds by September 30th must be returned to the Treasury and homeowners in 32 states cannot obtain future assistance. 

NACA with hundreds of thousands of members will not be silenced.  We will start by stopping our veteran homeowners from losing their American Dream.  NACA will continue to lead the campaign including our extraordinary Save-the-Dream events to protect our veterans here at home and the millions of homeowners at risk of foreclosure.